Correlation Between Gladstone Commercial and One Stop

Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and One Stop at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gladstone Commercial and One Stop into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gladstone Commercial and One Stop Systems, you can compare the effects of market volatilities on Gladstone Commercial and One Stop and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gladstone Commercial with a short position of One Stop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and One Stop.

Diversification Opportunities for Gladstone Commercial and One Stop

-0.26

Correlation Coefficient

Gladstone Commercial  One Stop

Very good diversification

The 3 months correlation between Gladstone and One is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial and One Stop Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Stop Systems and Gladstone Commercial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gladstone Commercial are associated (or correlated) with One Stop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Stop Systems has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and One Stop go up and down completely randomly.

Pair Corralation between Gladstone Commercial and One Stop

Given the investment horizon of 90 days Gladstone Commercial is expected to under-perform the One Stop. But the stock apears to be less risky and, when comparing its historical volatility, Gladstone Commercial is 4.79 times less risky than One Stop. The stock trades about -0.07 of its potential returns per unit of risk. The One Stop Systems is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  259.00  in One Stop Systems on May 6, 2025 and sell it today you would earn a total of  234.00  from holding One Stop Systems or generate 90.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gladstone Commercial  vs.  One Stop Systems

Gladstone Commercial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gladstone Commercial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Gladstone Commercial is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

One Stop Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in One Stop Systems are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, One Stop unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gladstone Commercial and One Stop

The main advantage of trading using opposite Gladstone Commercial and One Stop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, One Stop can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in One Stop will offset losses from the drop in One Stop's long position.

The idea behind Gladstone Commercial and One Stop Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.